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State Name: Texas
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State Abbreviation: TX
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If you've been following the MBS Commentary, you know what a big deal this afternoon could be. Markets have been preparing for it for weeks and MBS Live members have been on top of those movements every step of the way.

This afternoon, when markets are convulsing mere milliseconds after the Fed Announcement, MBS Live members will know what's going on before anyone else. The accuracy and speed of our real-time price stream and alerts is unmatched.

We haven't heard much out of new Fed Vice Chair Richard Clarida since he accepted the position, but what we heard today was good. Well, at least the bond market reaction was good. His comments ended up setting the tone for the day.

So what did he say? Nothing too complicated... Whereas Fed Pres Bostic was talking about a "neutral rate" of 2.5-3.5 yesterday, Clarida said we're close to a neutral range NOW. That certainly seemed to be the biggest deal among his comments, but it was perhaps just as significant that he noted evidence of global economic slowing.

Stocks and bonds both rallied from there on out. The fact that the shorter end of the yield curve led the charge was especially telling (that's where we'd expect to see a bond market rally driven by shifts in Fed rate hike expectations).

The week ended with 10yr yields at a key technical level (3.075% at the 3pm close). The next major technical is arguably 3.00%. Fannie 4.0 MBS gained more than a quarter point to end in line with their best levels since early October.

MBS Pricing Snapshot

Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing is available via MBS Live.

About the Author

A former originator, Matthew began writing for Mortgage News Daily in 2007, covering a wide range of topics. Seeing a need in the marketplace, his focus increasingly shifted toward relating MBS and broader financial markets for loan originators.
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